Analysts at Morgan Stanley are predicting that Macau’s gross gaming revenue values will exceed $22 billion by 2027. The predictions follow the signing of new gaming concession contracts by Macau’s six operators, as well as our recent estimates of Macau’s annual revenue expected in the forthcoming period.

Under the terms of the agreement signed last week, the six concessionaires will have to increase their non-gaming spending by 20 percent if their aggregated five-year revenue reaches the given level.

Additional burden:

This measure will certainly represent an additional burden for concessionaires recently subjected to allocations of gaming facilities for the year 2023. At the moment, the burden is unequally shared among the operators but Macau authorities may change the situation anytime with a range of tax measures and allocations available for the future.

The same applies to investments pledged by the six companies. According to predictions from Morgan Stanley, ‘‘Macau will allow operators to start investing only from 2024, given that 2023 will still be a recovering year (instead of normalized)’’.


Following the terms of the concession agreements, the operators have pledged $14.79 billion in new investment over the 10-year period, namely: Sands pledged $3.76 billion, Galaxy $3.53 billion, Wynn $2.21 billion, MGM China $2.08 billion, SJM $1.75 billion, and Melco $1.47 billion.

Under the same contracts, concessionaires have to pay an annual fixed premium of MOP30 million ($3.73 million). They will also have to pay MOP300,000 ($37,320) per VIP gaming table and MOP1,000 ($124) per slot machine. Following the recent table and slot machine allocation measure, operators can run a minimum of 500 gaming tables and 1,000 slot machines each.

Non-gaming pledges:

Out of the total investment pledged by the concessionaires, 91 percent shall be utilized for non-gaming projects. The operators are required to detail their financial plans and expenditure through annual submissions to competent authorities.

If the companies don’t spend their investments, they will have to fund projects relating either to their own business or to the public interest. The approval and determination of both types of projects would be made by the government.

Funded projects:

Such projects include Melco‘s House of Dancing Water Show, cinema complex, indoor waterparks, Galaxy Arena and high-tech amusement park, Sands‘ garden-themed destination Le Jardin, and MGM‘s original performing arts and entertainment district. Wynn is planning a new theater and art gallery, while SJM intends to create three themed museums.

All of the six concessionaires have also pledged investments in Macau’s convention and exhibition industry, or MICE, to improve tourism offerings of the region and demonstrate their commitment to following corporate social responsibility provisions.